T-Mobile reports its first positive branded customer growth figures in four years

April 4, 2013
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    T-mobile

    T-Mobile has certainly be doing all it can lately to win over the hearts and minds of consumers, but it needs to based on the poor customer figures it has been posting for the past few years. But finally T-Mobile has announced some pretty decent customer figures for the first quarter of this year, breaking a four year long steak of losing branded customers.

    The company has seen a total increase of 579,000 customers in this quarter, compared to a net loss of 349,000 customers in Q4 2012. It’s also good news for T-Mobile’s postpay plans, which saw a substantial loss of 515,000 customers in the fourth quarter of last year. This has now reduced significantly to just 199,000 consumers lost in the first quarter of this year, a 61% improvement.

    Wholesale net customer additions also increased to 576,000 in the first quarter of 2013 compared with 410,000 in the last quarter of 2012.

    To sum up these results, T-Mobile had a total branded customer growth of 3,000 customers so far in 2013, compared with a net loss of 349,000 branded customers in Q4 of 2012. John Legere, President & CEO of T-Mobile USA, certainly seems optimistic about the results:

    “These results display positive momentum and the first positive branded growth in four years, … I believe the best is yet to come! “

    It’s certainly a positive start for T-Mobile considering the rocky months that the company has been experiencing lately, but there’s clearly a lot more work to be done. Hopefully innovative plans like UnCarrier and a further roll-out of LTE services can continue to lift T-Mobile’s fortunes for the remainder of the year.

    Show Press Release

    T-Mobile USA – Significant Progress in Q1 on the Branded Customer Business

    Summary of First Quarter 2013 Preliminary Key Customer Results:

    Total customer base increased 579,000 in the quarter to 34 million
    Branded net customer additions were positive in the quarter, a significant improvement of 352,000 sequentially
    Branded postpaid net customer losses improved to a loss of 199,000, a 61% improvement from a fourth quarter 2012 loss of 515,000
    Branded prepaid additions of 202,000, increased sequentially from 166,000, marking the seventh consecutive quarter of branded prepaid customer additions; T-Mobile has added approximately 1.7 million branded prepaid customers over the past seven quarters
    Branded postpaid churn declined to 1.9%, an improvement of 60 basis points sequentially and the best branded postpaid churn results in four years

    BELLEVUE, Wash.–(BUSINESS WIRE)–T-Mobile USA, Inc. (“T-Mobile”) today provided a preliminary view of key customer results for the first quarter of 2013, demonstrating continued positive momentum and the building of a solid foundation for growth. The Company generated positive branded net customer additions, a significant improvement in branded postpaid net customer losses and continued improvement in churn performance in the quarter. The business returned to branded customer growth in the first quarter, ahead of the March 26 Un-carrier launch which includes a radically simple unlimited plan; no annual service contracts; unbundling the cost of the plan and device with lowest up-front costs; introduction of iPhone 5; and launch of LTE in seven metropolitan areas. T-Mobile will release full first quarter 2013 results on May 8, 2013.

    Preliminary Key Customer and Churn Performance Results

    Total net customer additions for the first quarter of 2013 were 579,000, with total branded customer growth of 3,000 customers. This is a significant improvement from a net loss of 349,000 branded customers in the fourth quarter of 2012.

    “These results display positive momentum and the first positive branded growth in four years,” said John Legere, President & CEO of T-Mobile USA. “We have made material progress in stabilizing our branded business in Q1, which provides a solid foundation to build on with the new Un-carrier customer offers we launched last week across America. I believe the best is yet to come!”

    In the first quarter, T-Mobile reported meaningful improvement in its branded postpaid segment. Branded postpaid net losses were 199,000 for the first quarter of 2013, compared to net losses of 515,000 for the fourth quarter of 2012 and 510,000 for the first quarter of 2012. Sequentially, customer deactivations were significantly lower with branded postpaid churn at 1.90%, a 60 basis point improvement from the fourth quarter of 2012 and the best branded postpaid churn results since the second quarter of 2008.

    “Our customer experience improvement initiatives and the increase of higher credit quality customers coming over to T-Mobile are resulting in more people choosing to stay with T-Mobile, leading to a substantial increase in the retention of our most valuable postpaid customers,” continued Legere.

    Branded prepaid net customer gains were 202,000 for the first quarter of 2013, an improvement from 166,000 in the fourth quarter of 2012.

    Wholesale net customer additions increased to 576,000 in the first quarter of 2013 compared to 410,000 in the fourth quarter of 2012. This improvement was primarily attributable to the continued focus on growing the MVNO customer base.

    Bold “Un-carrier” Moves

    On March 26, 2013, T-Mobile announced a series of moves to address consumer frustration with the unnecessary cost and complexity of wireless – another important development in its growth strategy. The moves include radically simplifying its lineup of consumer rate plans to one incredibly affordable plan for unlimited talk, text and Web; ensuring that customers never have to sign an annual service contract with T-Mobile; and enabling customers to get the most popular smartphones whenever they want for the lowest upfront cost. T-Mobile also debuted its blazing fast 4G LTE network service in seven major metropolitan areas, including Baltimore; Houston; Kansas City; Las Vegas; Phoenix; San Jose, CA; and Washington, D.C.

    About T-Mobile USA

    Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the first quarter of 2013, approximately 34 million mobile customers were served by T-Mobile USA – all via a common technology platform based on GSM,UMTS, HSPA+ 21/HSPA+ 42, and LTE.

    For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.com/investor-relations.

    Comments

    • Oli72

      totally agree T-Mobile. the best is yet to come. the smart ones get it first and fast. been a consumer with T-Mobile for 2 months and not looking back. later Sprint.

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